The primary function of bank is to ?

Related Mcqs:

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

A. rise by an amount that depends on the bank’s reserve ratio B. rise by less than the amount of the deposit C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio D. fall by exactly the amount of the deposit as long as the … Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the...

The interest rate ?

A. is determined in the goods market and influences the level of planned investment and thus the money market B. is determined in the money market and influences the level of planned investment and thus the goods market C. is determined in the goods market and has no influences on the money market D. is … The interest rate ?Read More...

Suppose Imtiaz moves his Rs1,000 demand deposit from Bank A to Bank B. If both banks operate with a reserve ratio of 10 percent What is the potential change in money supply as a result of Gerard’s action ?

A. Rs 10,00 B. Rs 1,000 C. Rs 9,000 D. Rs 0...

If the investment demand curve is vertical ?

A. both monetary and fiscal policy are ineffective B. monetary policy is effective but fiscal policy is ineffective C. monetary policy is ineffective but fiscal policy is effective D. both monetary and fiscal policy are effective...

Central banks prefer to fix the ____ and accept the resulting _____?

A. demand for money, interest rate B. interest rate equilibrium money supply C. demand for money equilibrium money supply D. interest rate, demand for money...